1.

MEANING OF E – BANKING

Internet banking is the term used for new age banking system. Internet
banking is also called a online banking and it is an outgrowth of PC banking.
Internet banking uses the internet as the delivery channel by which to
conduct banking activity, for example, transferring funds, paying bills,
viewing checking and savings account balances, paying mortgages and
purchasing financial instruments and certificates of deposits (Haque et al,
2009).

➢ Internet banking is a result of explored possibility to use internet application

in one of the various domains of commerce. It is difficult to infer whether
the internet tool has been applied for convenience of bankers or for the
customers’ convenience. But ultimately it contributes in increasing the
efficiency of the banking operation as well providing more convenience to
customers. Without even interacting with the bankers, customers transact
from one corner of the country to another corner. There are many
advantages of online Banking. It is convenient, it isn’t bound by operational
timings, there are no geographical barriers and the services can be offered
at a minuscule cost (IAMAI’s, 2006).

➢ Electronic banking has experienced explosive growth and has transformed

traditional practices in banking (Gonzalez et al., 2008). Private Banks in
India were the first to implement internet banking services in the banking
industry. Private Banks, due to late entry into the industry, understood that
the establishing network in remote corners of the country is a very difficult

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 task. It was clear to them that the only way to stay connected to the
customers at any place and at any time is through internet applications.

➢ They took the internet applications as a weapon of competitive advantage

to corner the great monoliths like State Bank of India, Indian Bank etc.
Private Banks are pioneer in India to explore the versatility of internet
applications in delivering services to customers. As per prediction of
Broadie et al (2007) the e- banking is leading to a paradigm shift in
marketing practices resulting in high performance in the banking industry.
Delivery of service in banking can be provided efficiently only when the
back ground operations are efficient. An efficient back ground operation
can be conducted only when it is integrated by an electronic system.
Then components like data, hardware, software, network and people are the
essential elements of the system. Banking customers get satisfied with the
system when it provides them maximum convenience and comfort while
transacting with the bank.

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➢ Internet enabled electronic system facilitate the operation to fetch this result.
An in-depth analysis would help to understand that internet enabled
electronic bank system differentiates from traditional banking operation
through faster delivery of information from the customer and service
provider. Additionally, it has to be noted that the banking operations does
not transfer physical currencies instead it transfers the information about the
value for currencies. I-banks enable transfer of information more swiftly on-
line. (Salwar et.al, 2007).
In service organizations like banks, information flows more than physical
items. In the commercial world, especially in most advanced societies
today, money is rather carried in information storage medium such as
cheques, credit cards and electronic means that in its pure cash form.
According to Christopher et al (2006), E banking has become an important
channel to sell the products and services and is perceived to be necessity in
order to stay profitable in successful. The perception is the formed as a result
of interpreting the experience.
There is a growing interest in understanding the users’ experience (Hiltunen
et al.,2002.); as it is observed as a larger concept than user satisfaction. From
this perspective, assessing the user experience is essential for many
technology products and services (Wilson & Sasse, 2004) Customers have
started perceiving the services of bank through internet as a prime attractive
feature than any other prime product features of the bank.
Customers have started evaluating the banks based on the convenience and
comforts it provides to them. Bankers have started developing various
product features and services using internet applications.

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➢ Major events in banking history

• Florentine banking — The Medicis and Pittis among others.

• Knights Templar- earliest Euro wide /Mideast banking 1100-1300.
• Banknotes — Introduction of paper money.
• 1602 - First joint-stock company, the Dutch East India Company
founded.
• 1720 - The South Sea Bubble and John Law's Mississippi Scheme,
which caused a European financial crisis and forced many bankers out
of business.
• 1781 - The Bank of North America was found by the Continental
Congress.
• 1800 - Rothschild family founds Euro wide banking.
• 1930-33 in the wake of the Wall Street Crash of 1929, 9,000 banks
close, wiping out a third of the money supply in the United States.
• 1986 - The "Big Bang" (deregulation of London financial markets)
served as a catalyst to reaffirm London's position as a global centre of
world banking.
• 2008 - Washington Mutual collapses. It was the largest bank failure in
history.

➢ Oldest private banks

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 • Monte dei Paschi di Siena 1472–present, the oldest surviving bank in
the world. Founded in 1472 by the Magistrate of the city-state of Siena,
Italy.
• Rolo Banca founded 1473 - now part of Unicredit Group of Italy.
• C. Hoare & Co founded 1672
• Barclays, which was founded by John Freame and Thomas Gould in
1690[19] and renamed to Barclays by Freame's son-in-law, James
Barclay, in 1736
• Rothschild family 1700–present
• Wegelin & Co. Private Bankers 1741–present, the oldest Swiss bank,
founded in 1741 in St. Gallen, third largest private bank in Switzerland
• Hope & Co., founded in 1762

➢ WHAT IS E-BANKING

Internet Banking, also known as net-banking or online banking, is an

electronic payment system that enables the customer of a bank or a financial
institution to make financial or non-financial transactions online via the
internet. This service gives online access to almost every banking service,
traditionally available through a local branch including fund transfers,
deposits, and online bill payments to the customers.
Internet banking can be accessed by any individual who has registered for
online banking at the bank, having an active bank account or any financial
institution. After registering for online banking facilities, a customer need

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 not visit the bank every time he/she wants to avail a banking service. It is
not just convenient but also a secure method of banking. Net banking portals
are secured by unique User/Customer IDs and passwords.

➢ Special Features of Internet Banking

Here are some of the best features of internet banking:

• Provides access to financial as well as non-financial banking services

• Facility to check bank balance any time
• Make bill payments and fund transfer to other accounts
• Keep a check on mortgages, loans, savings a/c linked to the bank
account
• Safe and secure mode of banking
• Protected with unique ID and password
• Customers can apply for the issuance of a chequebook
• Buy general insurance
• Set-up or cancel automatic recurring payments and standing orders
• Keep a check on investments linked to the bank account

➢ Services Available through the Internet Banking

Once a customer is registered for online banking, he/she can log-in to the
respective online banking portal of his/her bank using the issued User-ID
and password.

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 Services Available on the Internet Banking Portals

Account Balance NEFT & RTGS Fund

View Bank Statements
Check Transfer

IMPS Fund Transfer Utility Bill Payment Start a Deposit

Open/Close a Fixed Make Merchant

Issuance of Cheque Book
Deposit Payments

Recharge Prepaid
Start Investments Buy General Insurance
Mobile/DTH

Check Mortgages, Set-up/Cancel Automatic Manage/Change Account

Loans Payments Details

Buy/Sell on E-Commerce
Book Online Tickets Invest and Conduct Trade
Platforms

➢ Types of Fund Transfers using Internet Banking

As we have already discussed, there are three types of fund transfers

which can be made using net-banking. Let us understand more-

NEFT
National Electronic Fund Transfer (NEFT) is a payment system which
allows one-to-one fund transfer.

• Using NEFT, individuals and corporates can transfer funds

electronically from any bank branch to any individual or corporate with
an account with any other bank branch in the country
• NEFT service is available 24×7 on internet banking. But, it is a time-
restricted service at the bank branch
• Usually, NEFT transfer is successfully completed within 30 minutes.
Nonetheless, the time can even stretch to 2-3 hours or might be
completed in just 10 minutes

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 RTGS
Real-Time Gross Settlement (RTGS) is a continuous settlement of
funds individually on an order-by-order basis.

• This payment system ensures that the receiver’s account gets credited
with the funds almost immediately and not after a certain duration, as is
the case with other payment modes like NEFT
• RTGS transactions are tracked by the RBI, thereby successful transfers
are irreversible. This method is majorly used for large value transfers
• The minimum amount to be remitted through RTGS is 2 lakh. There is
no cap on the maximum amount for transfer via RTGS
• Like NEFT, RTGS is also available online 24×7

IMPS
Immediate Payment System (IMPS) is another payment method that
transfers funds in real-time.

• IMPS is used to transfer funds instantly within banks across India via
mobile, internet and ATM, which is not only safe but also economical
both in financial and non-financial perspectives
• IMPS is an inexpensive mode of fund transfer. Other fund transfer
mediums such as NEFT and RTGS charge significantly higher than
IMPS
• It does not require details like account number, IFSC code, etc. Funds
can be transferred via IMPS just with the mobile number of the
beneficiary

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1.1. DEFINITION OF E-BANKING: -

➢ E-banking is defined as the automated delivery of new and traditional

banking products and services directly to customers through electronic,
interactive communication channels. E-banking includes the systems that
enable financial institution customers, individuals or businesses, to
access accounts, transact business, or obtain information on financial
products and services through a public or private network, including the
Internet.

➢ Customers access e-banking services using an intelligent electronic

device, such as a personal computer (PC), personal digital assistant
(PDA), automated teller machine (ATM), or Touch Tone telephone.
While the risks and controls are similar for the various e-banking access
channels, this booklet focuses specifically on Internet-based services due
to the Internet's widely accessible public network. Accordingly, this
booklet begins with a discussion of the two primary types of Internet
websites: informational and transactional.

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➢ E Banking is your personal banking service on the Internet, protected
with bank identifiers. It is available anywhere, anytime. E Banking
allows you to pay invoices to Finnish and foreign recipients easily and
securely. You can also check your account balances and transactions.
You can order a new card, withdraw a loan granted to you and make
mutual fund subscriptions. You access E Banking services by obtaining
bank identifiers. E Banking as such is free of charge but commissions
and fees in accordance with the service tariff will be levied on orders
and other transactions carried out through e Banking. E Banking allows
you to pay invoices to finish and foreign recipients easily and securely.
You can also check your account balances and transactions.

➢ You can order a new card, withdraw a loan granted to you and make
mutual fund subscriptions. You access E-Banking services by obtaining
bank identifiers. E- Banking as such is free of charge but commissions
and fees in accordance with the service tariff will be levied on orders
and other transactions carried out through E- Banking.

➢ The last decade has witnessed a drastic change in the economic and
banking environment all over the world. With the economic and
financial sector reforms introduced in the country since early 1990s, the
operating environment for banks in India also undergone a rapid change.
The process of deregulation and reforms in the Indian banking system
resulted in the creation of an efficient and competitive banking system.
Deregulation has opened up new vistas for banks to extend their
revenues by diversifying into universal banking, investment banking,
bank assurance, mortgage financing, depository services, securitization,
personal banking etc. At the same time, liberalization has opened the
turf to new players and brought greater competition among banks. To

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 survive the competition, the information & communication technology
significantly contributed to the growth and profit of financial
institutions worldwide.

➢ Technology is the key to move towards providing integrated banking

services to customers. Indian banks are late starter in the adoption of
technology for automation of processes and the integrated banking
services. But with the global adoption of technology, Indian banking is
also at the threshold of paradigm shift due to the latest changes. There
are various factors which have played important role in the Indian
banking sector for adoption of technology. Firstly, the economic
reforms introduced by the government almost fifteen years back which
resulted in opening up of new vistas for banks outside the country.

➢ E-banking is defined as the automated delivery of new and traditional

banking products and services directly to the customers through
multiple electronic means ADCs like ATM, IB, MB, etc.

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➢ E-banking was firstly introduced in India by the ICICI around 1996. E-
banking includes the systems that enable financial institutions,
customers and individuals or businesses to access accounts, transact
business or obtain information of financial products and services
through a public or private network, including the Internet. The E-
banking revolution provides new opportunities like Payment and
Settlement Systems.

➢ E-banking was firstly introduced in India by the ICICI around 1996. E-

banking includes the systems that enable financial institutions,
customers and individuals or businesses to access accounts, transact
business or obtain information of financial products and services
through a public or private network, including the Internet. The E-
banking revolution provides new opportunities like Payment and
Settlement Systems.

➢ E- banking creates ‘huge world of customer convenience’ With

continuing technology evolution and changing demographic
preferences banks all over the world keep finding new channels to put
their money on.

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➢ E-banking improves the internal working of a bank and ensures
customer satisfaction. It facilitates market penetration and growth in
customer base without any geographical constraints or time-based
limitations. Customers are influenced to use electronic channels to
conduct their banking transactions due to the benefits gained from E-
banking services.
➢ They are tremendous reduction in transaction costs, world over delivery
of banking services, real-time information, real-time transaction,
absence of geographical and time constraints, better employee-customer
social relationship, publicity of innovative and globally accepted
products/services, confidence of customers in the low-cost and cost-
effective e-channels, conversion of banks from traditional (‘brick and
mortar’) to e- banks(‘click and portal’), better quality service, increased
speed, increased efficiency, touch-screen technology, convenient and
cheaper electronic channels, easy, fast, efficient and secured financial
services at reasonable costs, single window servicing, convenience for
customers at their options to transact from anywhere, at any time and
using any delivery channel that are suitable for them, minimizing
personal visit to the branch premises and more suitability for changing
demographic preferences, etc.
➢ Thus, customers are embracing all the above benefits of E-banking. E-
banking enables banks to provide good, superior, very high-quality
customer service as well as to offer a broad range of products and/or
services to customers. It maximizes returns, acquires more customers
and builds the customer product ratio, extends their reach and increases
their contact with multi-platform consumers and ensures one’s privacy
and trust. These features enhance customer satisfaction. When the
customers adopt E- banking they have increased expectations about
service and support to enable them to banking on-line. Thus, E-banking

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 services have become the virtual main street of the world. The Internet
has created a new economic ecosystem. On October 18, 1995 Security
First Network Bank opened to the public as world’s first Internet bank.
ICICI bank introduced IB first in India.
➢ Advent and adoption of Internet by the industries have removed the
constraints of time, distance and communication making globe truly a
small village. Financial sector is no exception.
➢ Numerous factors such as competitive cost, customer service, increase
in education and income level of customers, cheapness, convenience
speed, security, accessibility at any time and at anywhere in the world,
etc. influence banks to evaluate their technology and assess their
electronic commerce and IB strategies. IB is a powerful technological
innovation which has the power to increase not only customer
satisfaction but also the bank’s profitability. It holds the potential to
drive the future of banking.
➢ It provides various types of new innovative products and /or services to
customers like account enquiry, fund transfer, payment of utility bills,
etc. It increases operational efficiencies and reduces costs. Online
banking plays a very important role in capital market transactions too.

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➢ The various payment and settlement systems through IB in Indian
banking system are MICR, Electronic Clearing Service (ECS), EFT,
Centralised Funds Message Service (CFMS), National Deferred System
(NDS), INFINET, RTGS, etc.
➢ Out of various ADCs, the IB is emerging as a most cost effective and
convenient and a delightful channel to the banks as well as customers
due to its inherent advantages. Electronic banking, also known as
electronic funds transfer (EFT), is simply the use of electronic means to
transfer funds directly from one account to another, rather than by
cheque or cash. You can use electronic funds transfer to.
➢ Directly deposit your pay check into 13 your bank or credit union bank
account. Withdraw cash from your bank account from an ATM machine
with a personal identification number (PIN), at your convenience.
Instruct your bank or credit union to mechanically pay few monthly bills
from your account, such as your auto loan or your mortgage payment.
Have the bank or credit union transfer funds monthly from your bank
account to your mutual fund account.
➢ Have your government social security benefits check or your tax refund
deposited directly into your bank account. Buy groceries, gasoline and
other purchases at the point-of-sale, using a check card rather than cash,
credit or a personal check. Use a smart card with a prepaid amount of
money embedded in it to be used rather than cash at a pay phone,
expressway road toll, or on college campuses at the library’s photocopy
machine or bookstores. Use your pc and private finance software to
coordinate your total personal monetary management process,
integrating data and activities related to your income, spending, saving,
investing, recordkeeping, bill-paying and taxes, alongside basic
monetary analysis and decision making.

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1.2. HISTORY OF E - BANKING IN INDIA
➢ In India, since 1997, when the ICICI Bank first offered internet banking
services, today, most new-generation banks offer the same to their
customers. In fact, all major banks provide e-banking services to their
customer. India is still in the early stages of E- banking growth and
development. Competition and changes in technology and lifestyle in
the last five years have changed the face of banking. The changes that
have taken place impose on banks tough standards of competition and
compliance. The issue here is – ‘Where does India stand in the scheme
of E- banking.’ E-banking is likely to bring a host of opportunities as
well as unprecedented risks to the fundamental nature of banking in
India.

➢ The impact of E- Banking in India is not yet apparent. Many global

research companies believe that E-banking adoption in India in the near
future would be slow compared to other major Asian countries. Indian
E-banking is still nascent, although it is fast becoming a strategic
necessity for most commercial banks, as competition increases from
private banks and non-banking financial institutions. Despite the global
economic challenges facing the IT software and services sector, the
outlook for the Indian industry remains optimistic.

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➢ The Reserve Bank of India has also set up a “Working Group on E -
banking to examine different aspects of E-banking. The group focused
on three major areas of E-banking i.e.
1. Technology and Security issues
2. Legal issues and
3. Regulatory and Supervisory issues.

RBI has accepted the guidelines of the group and they provide a good
insight into the security requirements of E-banking.

➢ The importance of the impact of technology and information security

cannot be doubted. Technological developments have been one of the
key drivers of the global economy and represent an instrument that if
exploited well can boost the efficiency and competitivity of the banking
sector. However, the rapid growth of the Internet has introduced a
completely new level of security related problems.

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 ➢ The problem here is that since the Internet is not a regulated technology
and it is readily accessible to millions of people, there will always be
people who want to use it to make illicit gains. The security issue can be
addressed at three levels.
➢ The first is the security of customer information as it is sent from the
customer’s PC to the Web server. The second is the security of the
environment in which the Internet banking server and customer
information database reside. Third, security measures must be in place
to prevent unauthorized users from attempting to long into the online
banking section of the website.

1.3. SERVICES PROVIDED BY INTERNET BANKING

RETAIL BANKING: The Retail banking application is an integration of

several functional areas, and enables customers to:
Issue Demand Drafts online
Transfer funds to own and third-party accounts
Credit beneficiary accounts using the VISA Money Transfer,
RTGS/NEFT feature

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Generate account statements
Setup Standing Instructions
Configure profile settings
Use e-Tax for online tax payment
Use e-Pay for automatic bill payments
Interface with merchants for railway and airline reservations
Avail DEMAT and IPO services
CORPORATE BANKING: The Online SBI corporate banking
application provides features to administer and manage corporate
accounts online. The corporate module provides roles such as Regulator,
Admin, Up loader, Transaction Maker, Authorizer, and Auditor. These
roles have access to the following functions:
Manage users, define rights and transaction rules on corporate accounts
Access accounts in several branches with a single sign-on mechanism
Upload files to make bulk transactions to third parties, supplier, vendor
and tax collection authorities.
Use online transactional features such as fund transfer to own accounts,
third party payments, and draft issues
Make bill payments bill payments over the Internet.
Authorize, modify, reschedule and cancel transactions, based on rights
assigned to the user
Generate account statement
Enquire on transaction details or current balance
VALUE ADDED SERVICES
Tax payments to central and state governments through site-to-site
integration.
Supply Chain Finance (e-VFS- Electronic Vendor Finance Scheme)
Direct Debit Facility
E Collection Facilities for:

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 Core Banking Transactions
Internet Bank transactions for incoming RTGS/NEFT Transactions
Internet banking transactions for SBI and associate banks
Debit facility where suppliers can directly debit their customer s account
through internet ‟ banking
1.4. PRODUCTS & SERVICES of E- BANKING

➢ E-Ticketing
➢ SBI E-Tax
➢ Bill Payment
➢ RTGS/NEFT
➢ E-Payment
➢ Fund Transfer Fund
➢ Third Party Transfer
➢ Demand Draft
➢ Cheque Book Request
➢ Account Opening Request
➢ Account Statement
➢ Transaction Enquiry
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 ➢ Demat Account Statement
➢ Donation

➢ E-TICKETING:

You can book your railway, air and bus tickets online through Online SBI.
To book your train ticket, just log on to irctc.co.in and create an ID there at
if you do not have one. Submit your travel plan and book the ticket(s)-either
i-ticket (where the delivery of tickets will be made at your address) or E-
tickets (wherein after successful payment transactions, an e-ticket is
generated which can be printed any time.
For an e-ticket, the details of photo identity card will be required to be filled
in) and select State Bank of India in the payment options. You will be
redirected to Internet Banking site of SBI (www.onlinesbi.com). After
submitting the respective ID and password, you can select your account.
After a successful debit, Railways will generate the ticket. Eticket can be
printed by you whereas the I-ticket will be dispatched by IRCTC at the
given address. Service charges @ Rs.10/- per transaction shall be levied in
addition to the cost of the ticket. Cancellation of E-ticket can be done by
logging on to IRCTC's site; refund amount will be credited to your account
directly within 2-3 days. For cancellation of I-ticket, you shall be required

21
 to submit your ticket at a computerized counter of Railways and on
cancellation; the amount shall be credited back to your account.
You can also book your Air ticket through the e-ticketing feature. Logon to
Indian Airlines website to make a payment for an e-ticket through State
Bank of India, you need to select SBI as the payment option. The payment
request will be redirected to Internet Banking site. The request may be
processed based on values sent from the airline’s website. Once a
transaction is processed, an appropriate response will be sent to airlines site
to update the status of the transaction.
You can print the E-ticket immediately. To book bus tickets to destinations
in Karnataka, log on to the KSRTC website. Provide details about the start
and end points of your journey, date of journey and number of tickets.
Verify availability of seats on the selected date and confirm the transaction.
Select „Online SBI to ‟make the payment.
Provide your credentials and select the SBI account that will be debited for
the payment. You are provided a KSRTC reference number for your e-
Ticket.

➢ BILL PAYMENT:

A simple and convenient service for viewing and paying your bills online.
No more late payments No more queues No more hassles of depositing

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 cheques. Using the bill payment you can view and pay various bills online,
directly from your SBI account.
You can pay telephone, electricity, insurance, credit cards and other bills
from the comfort of your house or office, 24 hours a day, 365 days a year.
Simply logon to http://www.onlinesbi.com/ with your credentials and
register the biller to which you want to pay, with all the bill details. Once
the bill is uploaded by the biller, you can make payment online.
You can see 'how do I' to learn the steps for using the facility. You can also
set up Auto Pay instructions with an upper limit to ensure that your bills are
paid automatically whenever they are due. The upper limit ensures that only
bills within the specified limit are paid automatically, thereby providing you
complete control over these payments.
The e-PAY service is available in various cities across the country and you
can now make payments to several billers in your region.

➢ RTGS/NEFT:
You can transfer money from your State Bank account to accounts in other
banks using the RTGS/NEFT service. The RTGS system facilitates transfer
of funds from accounts in one bank to another on a "real time" and on "gross
settlement" basis. This system is the fastest possible interbank money
transfer facility available through secure banking channels in India. RTGS
transaction requests will be sent to RBI immediately during working hours
post working hours requests are registered and sent to RBI on next working
day. You can also schedule a transaction for a future date. You can transfer
an amount of Rs.1 lac and above using RTGS system. National Electronic
Funds Transfer (NEFT) facilitates transfer of funds to the credit account
with the other participating bank. RBI acts as the service provider and
transfers the credit to the other bank's account.

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➢ E-PAYMENT:
You can pay your insurance premium, mobile phone bills and also you can
purchase mutual fund units by coming from the biller s website and
selecting state bank of India in the payment ‟option. LIC PREMIUM: For
paying premium of LIC policy logon to www.licindia.com and register your
policy details.

When the premium is due select State Bank of India in the make payment
option. SBI Mutual FUND: You can invest in the SBI Mutual Fund schemes
online. Logon to www.sbimf.com and select 18 the scheme in which you
want to make investment in the payment option select State Bank of
India.CC Avenue: Enjoy shopping at the CC Avenue Shopping Mall and
purchase from a wide variety of products and services through CC Avenue

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 Certified Vendors. Make payments for your purchases using your Internet
enabled SBI accounts.

➢ FUND TRANSFER:
The Funds Transfer facility enables you to transfer funds within your
accounts in the same branch or other branches. You can transfer aggregating
Rs.1 lakh per day to own accounts in the same branch and other branches.
To make a funds transfer, you should be an active Internet Banking user
with transaction rights. Funds transfer to PPF account is restricted to the
same branch.

Just log on to retail section of the Internet Banking site with your credentials
and select the Funds Transfer link under Payments/Transfers tab. You can
see all your online debit and credit accounts. Select the debit account from
which you wish to transfer funds and the credit account into which the

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 amount is to be credited. Enter the amount and remarks. The remarks will
be displayed in your accounts statement for this transaction. You will be
displayed the last five funds transfer operations on your accounts. On
confirming the transaction, you will be displayed a confirmation page with
the details of the transaction and the option to submit or cancel the funds
transfer request.

➢ THIRD PARTY TRANSFER:

You can transfer funds to your trusted third parties by adding them as third-
party accounts. The beneficiary account should be any branch SBI. Transfer
is instant. You can do any number of transactions in a day for amount
aggregating Rs.1lakh. To transfer funds to third party having account in
SBI, you need to add and approve a third party, you need to register your
mobile number in personal details link under profile section.
You will receive a One-Time SMS password on your mobile phone to
approve a third party. If you do not have a mobile number, third party
approval will be handled by your branch.
Only after approval of third party, you will be able to transfer funds to the
third party. You can set limits for third party transactions made from your
accounts or even set limits for individual third parties.

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➢ DEMAND DRAFT:

The Internet Banking application enables you to register demand drafts

requests online. You can get a demand draft from any of your Accounts
(Savings Bank, Current Account, Cash Credit or Overdraft). You can set
limits for demand drafts issued from your accounts or use the bank specified
limit for demand drafts. You can opt to collect the draft in person at your
branch, quoting a reference to the transaction. A printed advice can also be
obtained from the site for your record. 19 Alternatively, you may request
the branch to courier it to your registered address, and the courier charges
will be recovered from you.

➢ CHEQUE BOOK REQUEST:

You can request for a cheque book online. Cheque book can be requested
for any of your Savings, Current, Cash Credit, and Over Draft accounts.
You can opt for cheque books with 25, 50 or 100 cheque leaves. You can
either collect it from branch or request your branch to send it by post or
courier. You can opt to get the cheque book delivered at your registered
address or you can provide an alternate address.
Cheque books will be dispatched within 3 working days from the date of
request. Just log on st log on to retail section of the Internet Banking site

27
 with your credentials and select the Cheque Book link under Requests tab.
You can view all your transaction accounts.
Select the account for which you require a cheque book; enter the number
of cheque leaves required and the mode of delivery. Then, submit the same.

➢ ACCOUNT OPENING REQUEST:

It enables you to open a new account online. You can apply for a new
account only in branches where you already have accounts. You should
have an INB-enabled account with transaction right in the branch. Funds in
an existing account are used to open the new account.
You can open Savings, Current, Term Deposit and Recurring Deposit
accounts of Residents, NRO and NRE types.
Just log on to retail section of the Internet Banking site with your credentials
and select the New Account link under Requests tab. You can see all types
of accounts. Select the account and account type you wish to open and
submit the same.
Then, you need to select the branch and enter the initial amount to open the
account. You can select any of your accounts for debiting the initial amount.
Then, submit the transaction. Your new account opening request will be
processed by the branch.

28
➢ ACCOUNT STATEMENT:

The Internet Banking application can generate an online, downloadable

account statement for any of your accounts for any date range and for any
account mapped to your username.
The statement includes the transaction details, opening, closing and
accumulated balance in the account. You can generate the online account
statement for any date range or for any month and year.
The account statement can be viewed online, printed or downloaded as an
Excel or PDF file. You also have the option to select the number of records
displayed in each page of the statement. The options are 25, 50, 75, 100 and
ALL.

➢ TRANSACTION ENQUIRY:
It provides features to enquire status of online transactions. You can view
and verify transaction details and the current status of transactions. Your
VISA transactions can 20 also be viewed separately. Just log on to retail
section of the Internet Banking site with your credentials and select the
Status Enquiry link under the Enquiries tab.
You will be displayed all online transactions you have performed. To view
details of individual transactions, you need to click the Transaction

29
 Reference number link. You are displayed the debit and credit account
details, transaction amount, narration and transaction status.

➢ DEMAT ACCOUNT STATEMENT:

This enables you to view Demat account statement and maintain such
accounts. The bank acts as your depository participant. In the third-party
site, you can mark a lien on your Demat accounts and use the funds to trade
on stock using funds in your SBI savings account. You can view Demat
account details, and generate the following statements: statement of
holding, statement of transactions, statement of billing.

➢ DONATION:

You can make donation to religious and charitable institution by using

Internet Banking of SBI. After selecting the debit account select the
religious/charitable institution that you want to offer donation. After
successful payment you can print an E-receipt for the donation made.

30
1.5. E-Banking Issues & Challenges

➢ The banking industry in India has experienced radical changes since

independence with the improvements in technology & automation. The
banking sector has become highly competitive. To survive & grow in the
changing market scenario banks are opting for best in class & latest
technologies. Introduction of IT has changed the banking industry from
paper & branch banks to digitize & network-based banking services.
Information technology has become the base of the recent financial sector
reforms and has helped the banks in developing leaner and more flexible
structure that can respond quickly to the dynamic of a fast-changing market.
The use of IT in the banking sector has increased beyond one’s imagination
with features like online loan application, online uploads of documents, net
banking online bill payments etc. before couple of decades who would have
thought these things could have been possible.

➢ E-Banking:
E-banking refers to performing basic banking transactions by the customers
round the clock globally through electronic media by sitting at their office
or at homes through PC or LAPTOP. The customers can access the banks
website for viewing their account details and perform the transactions on
account as per their requirement. Modern banking is more information
based speedy & boundary less due to the impact of E-Revolution. Electronic
banking, also known as electronic funds transfer (EFT), is simply the use of
electronic means to transfer funds directly from one account to another,
rather than by cheque or cash.

31
➢ Evolution Of E-Banking in India:
Internet banking, both as a medium of delivery of banking services and
as a strategic tool for business development, has gained wide acceptance
internationally and is fast catching up in India with more and more banks
entering the fray. India can be said to be on the threshold of a major
banking revolution with net banking having already been unveiled
In India, Reserve Bank of India outlined the mission to ensure that
payment and settlement systems are safe, efficient, interoperable,
authorized, accessible, inclusive and compliant with international
standards.
The Vision is to proactively encourage electronic payment system for
ushering in a less cash society in India. Regulation is keen to promote
innovation and competition with an intention to help payment system
achieve international standards. Various initiatives by Reserve Bank of
India, in mid-eighties and early-nineties, resulted in offering technology-
based solutions.
The need evolved to provide cost effective alternative system. Electronic
Clearing Service (ECS) was launched in 1990s to cater to bulk and
repetitive payments. By September 2008, a new avatar in the form of
National Electronic Clearing cell was launched to handle multiple credits
to beneficiary accounts.
National Electronic Clearing Service (NECS) rides on core banking
solution of member banks. The retail funds transfer system was
introduced in 1990s to allow electronic transfer of fund for people-to-
people payment.
In November 2005, a robust system was launched to allow one to one
funds transfer requirement of individuals and corporates. Prepaid

32
instruments allow transaction for goods and services against the value
stored on payment instrument.
It may be in the form of smart cards, magnetic stripe cards, internet
wallets, mobile accounts, mobile wallets and paper vouchers. Consequent
to the guidelines in mobile banking, selected banks were permitted to
offer the service after receipt of necessary permission from Reserve Bank
of India. Indian Retail payments pose significant challenges and
opportunities.
Based on Payment system vision document released by Reserve Bank of
India, the number of non-cash transactions, at 6 per person, is low in
India. It is estimated that Government subsidies alone constitute more
than Rs.2.93 trillion and electronification has a potential to translate 4.13
billion electronic transactions in a year. The credit of launching internet
banking in India goes to ICICI Bank.
Citibank and HDFC Bank followed with internet banking services in
1999. The Government of India enacted the IT Act, 2000 with effect from
October 17, 2000 which provided legal recognition to electronic
transactions and other means of electronic commerce.
The Reserve Bank is monitoring and reviewing the legal and other
requirements of e-banking on a continuous basis to ensure that e-banking
would develop on sound lines and e-banking related challenges would
not pose a threat to financial stability. According to report of RBI in Jan
2016, there are 196079 ATM and 1337310 point of sale devices in India.
Indian banks offer to their customers following e-banking products and
services:
• Automated Teller Machines (ATMs)
• Internet Banking
• Mobile Banking
• Phone Banking
33
 • Tele banking
• Electronic Clearing Services
• Electronic Clearing Cards
• Smart Cards
• Door Step Banking
• Electronic Fund Transfer

➢ Growth in ATMs
The geographic reach of ATMs increased further as the number of ATMs
installed increased to around 0.2 million as at end March 2016, an
increase of 9.7 per cent over the previous year. Public Sector Bank
maintained more than a 70 per cent share in the total number of ATMs.
Foreign Banks, however, continued to post a decline in the number of
ATMs

34
1.6. ADVANTAGES OF ELECTRONIC BANKING: -

➢ Now it is also called on line or home banking electronic banking was stared
with the use of proprietary software. Following are the important
advantages of electronic banking

1. Paper Work Reduced: -

The traditional procedure of banking is manual and paper based. Electronic
banking is gradually replacing the paper transactions in the banks which has
reduced the paper work.

2. Easy Transactions: -

Electronic banking has reduced the problems of the customers like writing
cheques, filing taxes, and transforming of cash. Now in ATM facility there
is no need of cheque book.

3. Security: -

35
 Electronic banking provides the safe system of payment. Now transactions
are made in the accounts through internet.

4. Saving Of Time: -
Electronic banking has saved the time and money of the customers and also
the bank. Now burden of work on bank employees has been also reduced
were hired at higher wages, so operating cost was very high. Now by using
electronic banking the number of employees has been reduced.

5. Reduction In Cost: -
In case of manual banking, large number of employees were hired at higher
wages, so operating cost was very high. Now by using electronic banking
the number of employees has been reduced.

6. Market Expanded: -
Due to electronic banking, national international market of various goods
and services has been expanded. Now we can purchase and make payment
in any place in the world.

7. Increase In Customers: -
As the banking industry is expanding due the modern facilities, it is
attracting more and more customers. So, number of customers are
increasing day by day

8. Branches Reduced: -
Now there is no need to open the branches on every place in the city because
due to electronic banking facilities, there is no rush of customers in the
banks. Because there is no need to visit the bank physically. So heavy cost
of opening the new branches has been reduced and facilities are provided at
low cost.

36
9. Checking Of Account: -
Every customer can check his balance of account sitting at home and makes
the payments without travelling. It saves his time and expenses.

10. Utility Bills Payment: -

Bills, like telephone, gas, electricity and water can be easily paid to the
concerned departments without going to the bank physically. Even he is
sitting in any other country, he can make the payment.

11. Transferring Of Money: -

There is no need of writing the deposit slip cheques and drafts. By using the
electronic banking money can be transferred easily.

12. Credit Cards: -

It is also very important facility for the customers that he can purchase the
goods and ca make the payment by using the credit cards.

37
1.7. DISADVANTAGES OF ONLINE BANKING:

➢ No one type of bank can be the best at everything. In spite of their many
advantages, there are some drawbacks to using online banks as well. Here
are some of the downsides of working with an online bank:
1. Technology issues
2. Security issues
3. Inefficient at complex transactions
4. No relationship with personal banker
5. Inconvenient to make deposits

➢ Technology Issue:
In many ways, in many ways, an online bank is only as good as your or their
internet connection. If there’s a power outage, or if servers go down, you
might not have any access to your account whatsoever.
While some banks offer a phone number for customer service, it might be
overwhelmed if online access is down. With a real bank, you can always
find someone to talk to in the branch.

38
➢ Security Issues:
While many online banks are reputable and well-established, sometimes it
can be hard to feel comfortable with a bank that doesn’t have a physical
presence, particularly when large sums of money are involved. If a website
suddenly folds up, what will happen to your money? There’s also the risk
of identity theft or actual theft if someone gains unauthorized access to your
account via a hacked or stolen password or log-in credentials.

➢ Inefficient at Complex Transactions:

Online banks might be able to transfer money between accounts or pay bills,
but you might be more comfortable with an international, bricks-and-mortar
bank if you have complex transactions. Worldwide, business-oriented banks
like Chase have global transaction capabilities, such as the ability to send
payments to more than 35 different currencies worldwide, that online banks
might not be able to muster.

Without a real-world presence, most online banks can’t even offer the
services of a notary public, which require an in-person visit and necessary
for most important financial transactions like buying a home.

39
➢ No Relationship with Personal Banker:
Over time, you can develop a relationship with a personal banker if you visit
a traditional bricks-and-mortar location. If you’re dealing with an online
bank, on the other hand, you’re typically handed off to an anonymous
customer service agent who is unlit is unlikely to know you from the next
customer. If you’re really in a bind, financially speaking, having a
relationship with someone who can help and who knows you well can be a
major advantage over a strictly online banking relationship.

➢ Inconvenient to Make Deposits:

It might seem counterintuitive that a bank, whose purpose is to attract
assets, makes it hard for customers to make deposits, but that can be true
in the case of some online banks. With an online bank, you can’t simply
drop off cash or a check at a local branch. In fact, some online banks, like
Ally Bank, won’t accept cash deposits at all. Using Ally Bank as an
example, to make a deposit you’ll have to m ail a check, transfer money
from another bank or another account, or use the bank’s e -check deposit
service.

40
CHAPTER NO: II
LITERATURE &
REVIEW

41
2.1. COMPANY PROFILE:

INTRODUCTION OF HDFC BANK

1. HDFC BANK

HDFC Bank Limited (Housing Development Finance Corporation) is

an Indian banking and financial services company headquartered
in Mumbai, Maharashtra. It has 88,253 permanent employees as of 31
March 2018 and has a presence in Bahrain, Hong Kong and Dubai.
HDFC Bank is India’s largest private sector lender by assets. by assets.
It is the largest bank in India by market capitalization as of February
2016. It was ranked 69th in 2016 Brand Top 100 Most Valuable Global
Brands.

2. BACKGROUND:
HDFC Bank Limited (Housing Development Finance Corporation) is
an Indian banking and financial services company headquartered
in Mumbai, Maharashtra. It has 88,253 permanent employees as of 31
March 2018 and has a presence in Bahrain, Hong Kong and Dubai.
HDFC Bank is India’s largest private sector lender by assets. by assets.
It is the largest bank in India by market capitalization as of February
2016. It was ranked 69th in 2016 Brand Top 100 Most Valuable Global
Brands.

42
2.2. OBJECTIVES, FEATURES, FUNCTIONS & GOAL:

The ideal way to connect with the core of any company is to

understand its background and objectives. We at HDFC aspire to
provide our customers with unique home loan solution and make
home ownership an easy and simple as unlocking a door with a key.
The strategies are to increase the return on equity each year by 1
percentage point in order to maximize shareholder value, maintain
gross Non-Performing Assets (NPAs) below 1%; consistently grow
the loan book; improve operational efficiency by consistently bringing
down the cost to income ratio.

1. Business Objective:
Primary objective is to enhance residential housing stock in the country
through the provision of housing finance in a systematic and professional
manner, and to promote home ownership. The aim to increase the flow
of resources to the housing sector by integrating the housing finance
sector with the overall domestic financial markets.

2. GOALS
• Develop close relationships with individual households.
• Maintain our positions as the premier housing finance institutions in
the country.
• Transforms ideas into viable and creative solutions.
• To grow through diversification by gaining leverages from our
existing client base. client base.
• To nurture the values and ethos of Brand HDFC through all its
subsidiaries and Associate Companies.

43
3. GROWTH STAGES OF BOTH THE BANKS:
ICICI Bank, which has been the largest private lender for years, hasn’t
had a smooth run lately. In the last two years, the volume of bad loans
on its books has ballooned, requiring it to set aside a higher sum to
provision for these.
In turn, profitability has taken a beating. And while the bank has been
focusing on cleaning up its books, its asset base hasn’t grown
significantly. At the end of September, its gross non- performing assets
stood at 7.87% of the total gross advances. This led to a steep 30%
decline in its consolidated net profit from Rs2,979 crore a year ago to
Rs2,071.38 crore. Meanwhile, most Indian lenders are bogged down by
bad loans.
At Rs7.29 lakh crore in March 2017, these toxic assets were equivalent
to 5% of the country’s GDP. “In the last couple of years, ICICI Bank has
been caught up in cleaning up its books, research analyst at Motilal
Oswal, a domestic brokerage.
“They have been reducing and changing its strategy due to the change in
the business environment,” said Alpesh Mehta their international
business and trying to make their domestic asset business stronger.
All this has had an effect on the bank’s growth.” HDFC Bank, on the
other hand, is among a select few lenders that have managed to keep
their bad loans under check. At the end of September, its gross NPAs
stood at 1.26% of its total gross advances. Another factor at HDFC Bank
is its focus on retail loans.
At a time when the business environment is still sluggish, corporate
borrowing from banks has taken a beating, while it has traditionally been
a strong business for ICICI Bank. But retail loans-auto, personal loans,
credit cards etc, continue to grow at a robust pace, allowing HDFC Bank
to get ahead. “There has been pressure on the corporate loan book of
44
 banks as there is no significant demand,” said Siddharth Purohit,
research analyst at SMC Institutional Equities, a domestic brokerage.
“In such a scenario, a lender such as HDFC Bank, which mainly focuses
on retail loans and working capital loans, is better placed to grow. I
expect HDFC Bank to grow at a faster pace compared to ICICI Bank for
the next two years. “In September, the Reserve Bank of India gave a vote
of confidence to HDFC Bank by including it in its “too big to fail”
category. Being a part of this list means that a crisis at these banks can
signal an economic disaster.
The State Bank of India, the country’s largest lender, and ICICI Bank
are the other two members of this club. The markets, too, have given
HDFC Bank a thumbs up, with the company emerging as the most
valuable lender in the country. It had a market capitalisation of Rs4.73
lakh crore on Nov. 03, 2017.

2.3. TYPES OF HDFC SAVINGS ACCOUNTS:

A savings account is a zero-balance account opened as an operative

account for fixed deposits/investments, for day-to-day personal
transactions, remittances to India, or for salary and payments, standing
orders and direct debits/savings. HDFC Bank offers the following
Savings Account Schemes:
1. Savings Max Account:
Higher interest can be earned on funds that are lying idle, through
the automatic sweep out facility.

2. Regular Savings Account:

This account is created for all your day-to-day banking
requirements.

45
3. Women’s Savings Account:
This account offers women a complete banking solution and caters
to her financial, lifestyle and investment needs.

4. Kid’s Advantage Account:

This account scheme aims to develop money management skills in
kids and is a great method to accumulate savings for your child.

5. Senior Citizens Account:

This savings scheme is solely for the convenience of senior citizens
and comes with the benefits in relation to health, investment, and
other day to day banking solutions.

6. Family Savings Group Account:

This savings account scheme is a complete banking solution for
your entire family, with benefits from a single account.

7. Basic Savings Bank Deposit Account:

This is a zero-balance savings account with free ATM/debit card,
that meets all your banking requirements.

8. Institutional Savings Account:

This Zero balance savings account are made available for Trusts,
Societies, Associations, Clubs, NGOs and so on.

9. BSBDA Small Account:

This is a zero-balance savings account that comes with a free ATM
card, that gives access HDFC’s large ATM network across India and
helps to meet all your banking requirements.

46
2.4. HDFC Bank Products and Services:

• HDFC Business Loan:

To help small and medium scale businesses grow and flourish more,
HDFC Bank offers business loans loaded with a host of benefits. These
loans are tailor-made to suit the unique needs of a business and are
available at competitive interest rates.
There is no need to pledge an asset as collateral for business loans and
the application process is also transparent. Additional features like 60-
second eligibility check, disbursal within 48 hours, dropline overdraft
facility and the credit protect plan together make this loan a great option
for small businesses. Business loans up to Rs. 50 Lakhs can be availed
at HDFC Bank.

• HDFC Car Loan:

HDFC Bank offers car loans for purchasing a new car or a pre-owned
car at highly attractive rates of interest. Ranging from a compact car to
a luxury sedan with lavish features, loans can be availed to fund any
dream vehicle. Up to 100 percent financing is offered by HDFC Bank
and there is flexible loan tenure for up to a period of 7 years.
HDFC Car Loan can be taken for a highest amount of Rs. 3 Crores.
Customers can check their eligibility for this loan within 60 seconds by
filling some basic details and can be approved in just 30 minutes. Some
special benefits on car loan are provided to existing customers of HDFC
Bank.

• HDFC Credit Card:

HDFC Bank is the largest credit card provider in the country and offers
an exciting range of credit cards that match the needs of different types
of customers and their spending habits. You can find all types of cards

47
 in HDFC Bank’s gamut - premium, super-premium, co-branded, travel,
regular and commercial.
Unmatched benefits and discounts are provided on these cards in the
form of airport lounge access, frequent flier miles, movie tickets,
cashbacks, rewards and direct discounts. HDFC Credit Cards are
universally acceptable and facilitate cashless transactions across several
merchants both online and offline.

• HDFC Debit Card:

To save the customers from the hassles of withdrawing cash every time
they want to make a transaction, HDFC Bank offers a complimentary
debit card to its savings account holders. These cards are secured with a
PIN and OTP secured at the time of making online transactions. Times
Points Debit Card, Easy Shop Platinum Debit Card, Jet Privilege HDFC
Bank Signature Debit Card and RuPay Premium Debit Card are some
popular debit cards by HDFC Bank. Based on the type of debit card,
you can avail benefits like fuel surcharge waiver, cashback, high daily
limit and air miles earnings. You can also customize your daily limit by
calling the bank’s customer service desk.

• HDFC Education Loan:

HDFC Bank also offers education loans at attractive interest rates to
help the students pursue education in their dream institute whether in
India or abroad. Loans up to Rs. 10 Lakhs can be availed at HDFC Bank
which is also eligible for tax exemption under section 80(E) of the
Income Tax Act, 1961. For high-value loans, collateral security is
required which includes fixed deposit, LIC, NSC or a residential
property. The bank also offers a flexible repayment tenure- loans below

48
 Rs. 7.5 Lakhs can be paid within 10 years and those above Rs. 7.5 Lakhs
have a maximum tenure of 15 years.
Transparent procedure and doorstep services make this a great option to
fund higher education.

• HDFC Bank FD:

Invest your money into HDFC Bank Fixed Deposit and earn high
interest on it. Fixed deposits, being the most popular investment
instrument in India, attracts people from all walks of life. all walks of
life. HDFC Bank allows them to invest their money with benefits of
flexibility and security. Senior citizen can avail 0.50 percent higher
interest rate. Existing customers can book their deposit by logging into
the net banking portal. You can also appoint nominees or avail sweep-
in facility.

• HDFC Gold Loan:

HDFC Bank offers gold loans to help its customers fulfil their
immediate need for cash such as wedding expenses, business expansion,
education or medical needs. These loans require minimal
documentation and ensure quick funds disbursal. The pledged gold
jewellery is kept under secure storage to ensure safety. Some of its
advantages include-
▪ Flexible rates of interest
▪ Minimal documentation
▪ Disbursal within 45 minutes
▪ Secure storage of the pledged gold

49
• HDFC Home Loan:
Customers can avail home loan from HDFC Bank at highly competitive
rates of interest. This loan can be availed for the purpose of buying a
house or to build one. Outstanding home loan from other banks can also
be transferred to HDFC Bank at lower rates of interest. HDFC Bank
ensures a hassle-free application process and easy documentation
formalities. You can also get pre-approved home loan and go house
hunting with more confidence. Some of the reasons why you must avail
HDFC Bank home loan are-
▪ Attractive interest rates
▪ Special lower rates of interest for women borrowers
▪ Safe document storage
▪ Quick processing and disbursal

• HDFC Bank Loan Against Property:

You can also avail loan against property with HDFC Bank to fulfil your
personal and business needs. Both residential and commercial
properties can be put forward as collateral and up to 60 percent of the
property’s value can be given to the borrower. Hassle-free loan
processing and quick disbursal make it a worthy option to fund your
immediate financial needs. Low EMIs, high loan amount and
competitive pricing are a few more advantages of loan against property
by HDFC.

• HDFC Personal Loan:

Meet your urgent financial needs with HDFC Bank personal loan.
Offered at competitive rates, personal loan can be used to provide for a
number of financial needs such as wedding, vacation, debt consolidation
and more.

50
 HDFC Bank provides personal loans at easier terms and conditions and
with hassle-free documentation. Some of its benefits are listed below-
▪ Loan amounts up to Rs. 40 Lakhs
▪ Loan disbursal in less than 4 hours
▪ Hassle-free application and minimal documentation
▪ Low EMIs

2.5. E – Banking services provided by HDFC Bank:

➢ Net Banking.
➢ Mobile Banking.
➢ Fund transfer.
➢ Recharge Prepaid Mobile/DTH Connection.
➢ Credit Card Payment. Pay Utility Bills.

Key Financial Data:

CRITERIA ICICI BANK HDFC BANK
P/E 16 24.60
P/BV 2.20 5.50
Average Dividend Yield (%) 1.90 0.90
Earnings Per Share (EPS) Rs. 66.30 Rs. 22.40
Income Per Share Rs. 329.60 Rs. 117.60
Book Value Per Share Rs. 531.60 Rs. 128.60
Outstanding Shares 1153 million 2347 million
Average Market Capitalization (Approx.) 1.02 Lakh Cr 1.13 Lakh Cr
Number of Employees (Approx.) 58000 66000
Profit Before Tax Rs. 10,866 Cr Rs. 7624 Cr

51
Profit After Tax Rs. 7,643 Cr Rs. 5,247 Cr
Net Profit Margin % 20.1 19
Advance /Loans (Approx.) 2.92 Lakh Cr 1.98 Lakh Cr
Deposits (Approx.) 2.81 Lakh Cr 2.46 Lakh Cr
Credit / Deposit Ratio (%) 103.6 80.7
Net Fixed Assets (Approx.) Rs. 5432 Cr Rs. 2378 Cr
Total Assets (Approx.) Rs. 6 Lakh Cr Rs. 3.4 Lakh Cr
Debt / Equity Ratio 7.2 9
Net NPA’s (%) 0.007 0.00

2.6. SWOT ANALYSIS OF HDFC BANK

❖ STRENGTH:
• First private life insurance company who got licenses by IRDA.
• Domestic image of HDFC supported by Standard Life’s
International image is the strength of the company.
• Strong and well spread network of qualified intermediaries and
salesperson.
• Strong capital and reserve base.
• The company provides customer service of the highest order.
• Huge basket of product range which are suitable to all age and
income groups.
• Large pool of technically skilled manpower with in depth
knowledge and understanding of the market
• The company also provides innovating products to cater to
different needs of different customers.

52
❖ WEAKNESS:
• Less number of branches compare to nearest competitors.
• Heavy management expenses and administrative costs.
• Low customer confidence on the private players.
• Vertical hierarchical reporting structure with many designations
and cadres leading to power politics at all levels without any
exception.
• Poor retention percentage of tied up agents.
• Every employee does not have enough knowledge about
insurance products and commission rates.

❖ OPPORTUNITIES:
• Insurable population: According to IRDA only 10% of the
population is insured which represents around 30% of the
insurable population. This suggest more than 300m people, with
the potential to buy insurance, remain uninsured.
• There will be inflow of managerial and financial expertise from
the world’s leading insurance markets. Further the burden of
educating consumers will also be shared among many players.

53
 • International companies will help in building world class
expertise in local market by introducing the best global practice.

❖ THREATS:
• Other private insurance companies also aiming for the same
uninsured population.
• Big public sector insurance companies like Life Insurance
Corporation (LIC) of India, National Insurance Company
Limited, Oriented Insurance
• Limited, New India Assurance Company Limited and United
India Insurance Company Limited. People have more trust in
these companies.
• Poaching of customer base by other companies.
• Most people don’t understand the need or are not willing to take
Insurance policies in general. People prefer short term investment
rather than insurance.

54
CHAPTER NO: III
RESEACH &
METHODOLOGY

55
 Research and Methodology
❖ What is Research…?
Research is defined as human activity based on intellectual application
in the investigation of matter. The primary purpose for applied
research is discovering, interpreting, and the development of methods
and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe. The term
research is also used to describe a n entire collection of information
about a particular subject.

Methodology
is the method followed while conducting the study on a particular
project? Through this methodology a systematic study is conducted on
the ba sis of which the basis of a report is produced. It is a written game
plan for conducting Research. Research methodology has many
dimensions.
It includes not only the research methods but also considers the logic
behind the methods used in the context of the study and explains why
only a particular method or technique has been used. It also helps to
understand the assumptions underlying various techniques and by
which they can decide that certain techniques will be applicable to
certain problems and other will not.
Therefore, in order to solve a research problem, it is necessary to
design a research methodology for the problem as the some may differ
from problem to problem. The methodology adopted for studying the
objectives was surveying the in-house customers of these two banks in
the city of Jalandhar.

56
3.1 TITLE

The title of this report is “A comparative study of E-Banking on HDFC

and ICICI bank.

3.2. Objective of the Study

1. To know what is the role of Internet in banking sector.

2. To know what are the challenges of online banking.
3. To know about the activities being provided by online banking
system.
4. To study the awareness of internet banking among the customer of
ICICI & HDFC Bank.
5. To access the to access the degree of customer satisfaction relating
to E-banking services.

3.3. Scope of study

1. The study will the study will be able to reveal the preferences, need,
perception, of the customer regarding the E - Banking services.
2. It also helps the Banks to know whether the E - Banking services
can really satisfy the customer needs.

3.4. TYPE OF RESEARCH

This study is DESCRIPTIVE in nature. It helps in breaking vague
problem into smaller and precise problem and emphasizes on
discovering of new ideas and insights.

57
3.5. Limitations of study

1. This study is based on the prevailing respondent’s satisfaction. But

their satisfaction may change according to time, fashion, need etc
2. Both Banks ICICI & HDFC are providing different E- Banking
services and acceptance to their current holders

3.6. RESEARCH DESIGN

Research design constitutes the blue print for the collection,
measurement and analysis of data. The present study seeks to identify
the extent of preferences of E- Banking over traditional banking among
service class. The research design is descriptive in nature. The research
has been conducted on customers of HDFC and ICICI Bank within
JALANDHAR. For the selection of the sample, convenient sampling
method was adopted and an attempt has been made to include all the
age groups and gender of every class.

3.7. RESEARCH METHOD:

Research can be defined as systematized effort to gain new
knowledge. Research is carried out by different methodology, which
has their own pros and cons.
Research methodology is a way to solve research problem along with
the logic behind them.
Thus, when we talk of the research methodology, we not only take of
research method but also context of our research study and explain
why we are using a particular method or techniques and why we are
not using other so that research result is capable of being evaluated
either by the researchers himself or by others.

58
3.8. TYPES OF DATA:
The data is collected from the following sources: -
1. Secondary Data: - Secondary data has been collected for other for
other useful resources & information essentially required in order
to successfully complete the project report & company figures
from the internet, books, magazines as well as newspaper.

➢ SAMPLE DESIGN AND SIZE

In this research project Descriptive research design is used. Judgment
and Convenience sampling method will be used to get the information
about online banking. This method is used because we are interested
in exploring gender, age, or occupation disparities in terms of online
banking in the population. For conducting this research, a structured
questionnaire is prepared and sample of 150 customers is taken from
ICICI and HDFC bank.

59
CHAPTER NO: IV
DATA ANALYSIS &
INTERPRETATION

60
➢ DATA ANALYSIS & DIAGRAM INTERPREATION:

Gender:

Sr. No Gender No. of Respondent

1. Male 31
2. Female 39

NO OF RESPONDENT
male female

44%

56%

➢ Interpretation:
In the above diagram the no. of person using the Internet banking is
shown. Out of total response 55.7% of females & 44.3% males are
using internet banking. From this it is understood that female usage of
internet banking is more as compared to male.

61
➢ Age Group:

Sr. No Age No. Of Respondent

1. Below 20 18
2. 21 – 30 27
3. 31 – 40 19
4. 41 – 50 5
5. More than 50 1

NO. OF RESPONDENTS
Below 20 21 - 30 31 - 40 41 - 50 More Then 50

2%
8%
25%

27%

38%

➢ Interpretation:
The above diagram represents the aged group of the people who are
using the Internet banking. The age group between 21-30 is the highest
percentage in aged person using the Internet banking. The age group
more than 50 is the lowest percentage in the diagram. The people in
the aged group below 20 for using the internet banking is 25.7%. The
people in the aged group 21 – 30 is 38.6%. The people in the aged
group 31-40 are 27.1%. The people in the aged group 41-50 is 8.6%
and for more than 50 is 1.6%.

62
1. Do you think that E-banking services are necessary in present
scenario?

No. Of Respondent
Yes 68
No 2

NO. OF RESPONDENT
Yes No

3%

97%

➢ Interpretation:
As shown in the above diagram, The E- Banking services in the present
scenario are essential in today generation. Out of total response the no.
of people using E- banking services used is 97.1% & the no. of people
not using the E-Banking services is 3%.

63
2. From which bank you are availing the e-banking services?

Banks No. Of Respondent

ICICI Bank 31
HDFC Bank 21
Other Bank 18

NO. OF RESPONDENT
ICICI Bank HDFC Bank Other Bank

26%

44%

30%

➢ Interpretation:
The above diagram shows the no. of customer of ICICI & HDFC Bank
using the E - Banking services. The no. of customer in ICICI Bank is
43.3% it is more than the no. of customer in HDFC Bank. The no. of
customer in HDFC Bank is 30% it is less than the ICICI Bank. In the
diagram there are some responses of customer who’s using the E-
Banking services from other bank also. The no. of customer using the
E - Banking services from another bank is 25.7%.

64
3. Where do you hear about Internet banking services?

Sources No. Of Respondent

Mass Media (Television, Newspaper, Radio) 9
Bank Directly 41
An SMS From Mobile Operator 7
Friends or Family 13

NO. OF REPONDENT
Mass Media (Television, Newspaper, Radio) Bank Directly
An SMS From Mobile Operator Friends or Family

13%
19%

10%

58%

➢ Interpretation:

The diagrams interpreted the sources of information where the bank

customer get to know about the E-banking services. There are various
sources such as Mass Media, Bank directly, a SMS from bank directly
& Friends or Family. The no. of customer getting the information from
Mass media (television, newspaper, radio) is 12.9%. The no. of
customer getting the information from Bank directly is 58.6%. The no.
of customer getting the information from a mobile operator through an
SMS is 10% and the no. of customer getting the information from
friends & family is 18.6%.

65
4. Why you have chosen this bank?

Reasons No. of Respondent

Services is good 32
They provide security 29
Cheaper services fees 1
Other 8

NO. OF RESPONDENT
Services is good They provide security Cheaper services fees Other

11%
1%

46%

42%

➢ Interpretation:
The diagram indicates the reasons behind choosing a particular bank
by the customer. There are several reasons for selecting a specific
bank. The no. of customer is 45.7% who think that their bank provide
a good services. The no. of customer is 41.4% who think that their
bank provides proper security. The no. of customer is 1% who think
that their bank offered a cheaper service fee. The no. of customer is
11.4% who’s reason for selecting their bank is other

66
5. Which type of E-banking services you want to use?

Services want to uses by the customer No. of Respondent

Transfer fund online 31
Online purchase and payment 48
Regular checking of bank statement 22
Request any card or cheque book service 8
Other 10

NO. OF RESPONDENTS
No. of Respondents

OTHER

REQUEST ANY CARDS OR CHEQUE BOOK

SERVICES
11.4

REGULAR CHECKING OF BANK STATEMENT 31.4

ONLINE PURCHASES AND PAYMENT 68.6

TRANSFER FUND ONLINE 44.3

➢ Interpretation:
The interpretation of the above graph is, As shown in the graph there
are different no. customer want to use different services through the E-
banking. The no. of customer wants to transfer fund online through the
E-Banking services is 44.3%. The no. of customer wants to purchase
& payment online through the E-Banking services is 68.6%. The no.
of customer wants to check their bank statement regularly through the
E-Banking services is 31.4%. The no. of customer wants to request any
card or cheque book through the E-Banking services is11.4%. The no.
of customer wants to use any other services through the E-Banking
services is 14.3%.

67
6. Manual banking is more convenient than Internet banking?

Options No. of Respondent

Strongly Agree 17
Agree 38
Neutral 15
Disagree 3
Strongly Disagree 2

NO. OF RESONDENT
Strongly Agree Agree Neutral Disagree Strongly Disagree

4%
4%
17%

22%

53%

➢ Interpretation:
In the above diagram we get to know about the customer view related
the Manual banking & Internet banking. The customer response related
to it different, the no. of customer who strongly agree with the point is
17.4%. The no. of customer who agree with the point is 53.6%. The
no. of customer whose in-between situation (Neutral) with the point is
21.7%. The no. of customer who disagree & strongly disagree with the
point is same 4.3%

68
7. How frequently do you use each of the following services?
Once in a Once in a Once in a Month Frequently
Week Day
Internet Banking 27 17 15 11
Mobile banking 14 39 9 9
Debit/Credit Card 27 12 26 9
Online Banking 17 22 19 12
Other 28 14 19 9

E - Banking

39

27 27 28
26
22
19 19
17 17
15 14 14
11 12 12
9 9 9 9

INTERNET BANKING MOBILE BANKING DEBIT/CREDIT CARD ONLINE BANKING OTHER

Once in a week once in a day once in a month frequently

➢ Interpretation:
The above diagram shown the following services uses by the customer
at day-to-day basis. There are many E-banking services such as
Internet banking, Mobile Banking, Debit or Credit card, Online
Banking etc. The graph indicates the services using by the customer on
week, day, month & frequently basis. The Internet banking user
customer once in a week is 27, once in a day is 17, once in a month is
15, & frequently user is 11. The Mobile Banking user customer once
in a week is 14, once in a day is 39, once in a month is 9, & frequently

69
 user is 9. The Debit or Credit Card user customer once in a week is 27,
once in a day is 12, once in a month is 26, & frequently user is 9. The
Online banking user customer once in a week is 17, once in a day is
22, once in a month is 19, & frequently user is 12. The E-banking
services uses by the customer, once in a week is 28, once in a day is
14, once in a month is 19, & frequently user is 9.

8. State the Degree of Confidence On E-Banking?

Option No of Respondent
Little 15
Some 31
Not at all 2
High 17
Very High 5

NO. OF RESPONDENT
Little Some Not at all High Very High

7%
22%

24%

2%

45%

70
 ➢ Interpretation:
The above diagram represents the degree of confidence of customer on
E-banking services. As shown on the above customer have some
degree of confidence on E- banking services. The no. customer has
different opinion, confidence on E-banking services. There are 21.4%
of customer who having a little degree of confidence on E – banking
services. There are 44.3% of customer who having a some of degree
confidence on E – banking services. Their banking services. There are
2% no. of customer who doesn’t have not at all a degree of confidence
on E – banking services. Their banking services. There are 24.3% of
customer who having a high degree of confidence on E – banking
services. There are 7.1% of customer who having a very high degree
of confidence on E – banking services.

9. To What Extent you are Satisfied with your banks "E- Banking
services"?

Option No. of Respondent

Highly Satisfied 19
Satisfied 31
Neutral 18
Dissatisfied 2

71
 NO. OF RESPONDENT
Highly Satisfied Satisfied Neutral Dissatisfied

4%
23%

27%

46%

➢ Interpretation:
The above diagram the above diagram shows the satisfaction level of
customer on E-banking services provided by their banks. The customers
which are highly satisfied through the E- banking services are 27.1%.
and those are just satisfied through the E-banking services is 44.3%. The
customer who having neutral opinion on it is 25.7%. The customer is
dissatisfied through the E-banking services is 4.3%

10. Which of the following benefits you get, while using E- Banking
services? (Can choose more than one option)

Benefits No. of Respondent

Time Saving 51
Less Expensive 35
Easy Fund Transfer 28
Easy Processing 16

72
 NO OF RESPONDENT
No of Respondent

EASY PROCESSING 16

EASY FUND TRANSFER 28

LESS EXPENSIVE 35

TIME SAVING 51

➢ Interpretation:
The above diagram represents the some of the benefits getting by the
customer while using E-banking services. The following are the benefits
getting through E -banking Time savings, less expensive, Easy fund
transfer, Easy processing. There are different respondent we getting in
our survey, There are 72.9% of customer get the benefits of Time saving
through E-banking services. There are 50% of customer get the benefits
of Less expensive through E-banking services. There are 40% of
customer get the benefits of Easy fund transfer through E-banking
services & 22.9% of customer get the benefits of Easy processing
through E-banking services.

73
11. For what purpose do you use Internet Banking? (Can choose more
than one option)

Purpose No. of Respondent

Mobile Phone Bill 38
Utility [Electricity, Water] 39
School Fees 21
Good for home 25
Good for Work 15
Other 13

NO. OF RESPONDENT
No. of Respondent

OTHER 13

GOOD FOR WORK 15

GOOD FOR HOME 25

SCHOOL FEES 21

UTILITY [ELECTRICITY, WATER ] 39

MOBILE PHONE BILL 38

➢ Interpretation:
The diagram shown the purpose of customer for using the e-banking
services. There are 54.3% of customer use the E-banking services to pay
their mobile phone bill. There are 55.7 % of customer use the E-banking
services to pay their utility (electricity, water bill). There are 30% of
customer use the E-banking services to pay their school fees of their
children & 35.7 % of customer use the E-banking services to get the

74
 goods for their home. The 21.4% of customer use the E-banking services
to get the goods for their work. The 18.6% no. of customer use the E-
banking services for their other purpose.

12. Are you satisfied with the number of services offered by your bank
on Online Banking platforms?

Option No. of Respondent

Always 27
Sometime 41
Never 2

NO. OF RESPONDENT
Always Sometime Never

4%

38%

58%

➢ Interpretation:
The diagram represents the satisfaction of the customer on E-banking
services of their respective bank. The 38.6% 0f respondents are always
satisfied with the number of services offered by their bank on Online
Banking platforms. The 58.6% of respondents are satisfied sometime
with the number of services offered by their bank on Online Banking
platforms. The 4.3% are never satisfied with the number of services
offered by their bank on Online Banking platforms.

75
13. Do you feel secure while making payment through E- Banking?

Option No. of Respondent

Not at all 3
Little 42
Somewhat 11
Very Much 14

NO. OF RESPONDENT
Not at all Little Somewhat Very Much

4%
20%

16%

60%

➢ Interpretation: The diagram represents the opinion of customer on E-

banking security while making payment or transferring any fund.
Only 4.3% customers not at all have faith on making payment through
E-banking. The 60% of customers have a little faith on making
payment on E-banking platform. The 15.7% customers are somewhat
trusting on payment through E-banking services. The 20% customers
are very much trust on their banks E-banking payment method.

76
14. Do you think using the internet for shopping & banking would make
your life easier?

Option No. of Respondent

Very Likely 24
Somewhat Likely 31
Neither Likely or unlikely 12
Very Unlikely 3

No. of Respondent

Very Likely Somewhat Likely Neither Likely or unlikely Very Unlikely

➢ Interpretation: The diagrams interpreted that, the thinking of

consumer for using internet to shopping & banking can make their
life better. The 34.3% of customers thinks that the internet is
beneficial for shopping & banking. The 44.3% of customers believe
that there are some benefits to use internet for shopping & banking.
The 17.1% customers select the neutral option to it. Only 4.3%
customers don’t think that through the internet the shopping &
banking would be easier.

77
15. Which of the offers do you get by your bank while using E-Banking?
(Can choose more than one option)

Option No. of Respondent

Cashback 37
Discount 29
Gift – Voucher 33
Free Shopping 17

NO. OF RESPONDENT
No. of Respondent

FREE SHOPPING 17

GIFT - VOUCHER 33

DISCOUNT 29

CASHBACK 37

➢ Interpretation:
The above diagram interprets the offers getting by the customer for using
E-banking. There are different offers that anyone can get for using
internet banking. Such as Cashback, discount, Gift- vouchers, Free
shipping etc. The 52.9% customers got the cashback offer for using the
E -banking. The 41.4% customers got the discount offer for using the E
-banking. The 47.1% customers got the Gift – vouchers for using the E
-banking. The 24.3% customers get the free shipping for using the E -
banking

78
CHAPTER NO: V
CONCLUSIONS &
SUGGESTIONS

79
1. CONCLUSIONS

➢ In a country like India, there is a need for providing better &

customized services to customer. Bank must be concerned about the
attitudes of customers with regards to acceptance of internet banking.
The importance of security and privacy for acceptance of internet
banking has been noted in many earlier studies and it was found that
people claim that they have knowledge about security issues but they
have no clear idea about all kinds of frauds. The present study shows
that customers are more reluctant to accept new technologies or
methods that might contain very little risk. Hence, banks should
design a secure website to address security and trust issues.

➢ The survey was conducted with 70 people of Mumbai (suburban

area). So, we can’t say this is the real trends of net banking of whole
in the country.
➢ The study found that due to technological innovations and significant
change in demographic profile of customers, there is a huge market
potential lying ahead.
➢ People are not so confident enough to whether to depend completely
on online banking. There is hesitancy in their minds with regards to
preference. So, they use both the services online and offline banking.
➢ At the time of survey when I give questionnaires to people, they very
casually fill it without think of the depth of the study.
➢ Another point is people are not show their personal data truly.

➢ The study was conducted with the help of students, service holders
and business men etc.
➢ The study reveals that ATM banking, Online banking, Online
shopping, Online recharge, etc are performed by so many respondents
but it does not reflect that NEFT, RTGS, or D MAT services are not
performed by the people

80
2. FINDINGS

➢ One of the most important reasons for which people are opting the
Private banks is due to the e-banking services and inter connectivity
between the branches.

➢ The people having high income are more concerned for the e-banking
services as compared to average and low-income group.

➢ 70 people respond to this study. But out of which 3 people think that
e- banking is not necessary for the present scenario.

➢ 30 respondents in ICICI & 21 in HDFC are availing the e-banking

services.

➢ Out of 70 31 are male and 39 are female. That’s mean the female are
more frequently uses the e- banking services. Working ladies and
school-college student having knowledge about the service.

➢ Most of the respondents who lies under 21-30 are using E-Banking
services.

➢ Among 70 respondents most of them are either service holder or

business person. Because the service is more benefited towards this
people.

➢ It is very interesting to see that 30 people have account in ICICI, &

21 in HDFC. But ICICI has more customer than others.

➢ 24*7 Business hours is the main benefit which online banking users
have seen among other options.

81
 ➢ Most of the online banking users have a tendency to spend Rs.1000
or below this amount in a single transaction.
➢ Users got excellent Users got excellent services from ATM
BANKING, BALANCE ENQUIRY, BILLS PAYMENT, ONLINE
SHOPPING and ONLINE RECHARGE etc, and other services have
not excellent performance like that.

➢ Most of the users have no requirement for daily base transactions,

they prefer monthly base transactions.

➢ This study revealed that most of the users claim that they aware of
security threats and they took recommend steps to secure the net
banking.

➢ People also claim that ATM SERVICE, BILL PAYMENT

SERVICE, INTERNET SECURITY SERVICE should be modified
in near future. Some people also want a customer feedback service.

➢ Moreover 18 people are highly satisfied with these services and 31

people are satisfied and remain are not properly satisfied.

3. SUGGESTIONS
➢ We can see the time is changing and we are now accepting technology
but there is still a lot of perceptual blocking which hampers the
growth its normal tendency of technology, that why the growth of
internet banking is very primitive nature.

❖ RECOMMENDATIONS TO BANKS:
• Banks should obey the RBI norms and provide facilities as per the
norms. But this are not completely followed by the banks. Some of our
respondents complained that their bank does not give feedback of

82
 online transaction in proper times. If customers do not get proper
feedback, then their interest in online services will be reduced. So,
bank should take proper steps to build their feedback services.

• Internet banking facilities must be made available in all banks as well

as in all branches

• Link failure is a big problem specially in HDFC bank and for this
reason the important business deal has been hampered so bank should
modify their software immediately

• Now ICICI and HDFC banks install automated balance update

machine to avoid customer harassment.

• To prevent online banking from remaining customer to prompt these

services through advertising co.

• After repairing this basic deficiency bank must ensure that their service
is competitive.

• Bank should not take more charge from their customer.

• The users of e-banking services is still not up to the mark as expected

by the banks. This requires awareness among the customer about
benefit of this service. The customer should be educated about the
benefit of this services, this would help the bank in a long run.

• Fair dealing with the customers is more preferable. The banks staff
should be co-operative, friendly and must be capable to understand the
problems of the customers.

• Bank should give proper training to customers to use net banking.

83
• Bank should give proper training to customers to use net banking.

• Banks should make their sites more user friendly, customers should be
motivated to use internet banking facilities more.

• Banks are now using two factor authentication i.e. password and OTP
but they should improve that and using three factor authentication
because hackers sometimes break the two factor authentication system.

84
 BIBLOGRAPHY

❖ WEBSITE:
• www.google.com
• www.icici.com
• www.hdfc.com
• www.scribd.com
• www.rbi.org.in
• www.investopedia.com
• www.wikipedia.com
• www.paisabazaar.com

❖ LINKS

• Comparative Study On E-Banking Of Icici And Hdfc Bank - PDFCOFFEE.COM

• “Satisfaction from e banking services. a comparative study of hdfc a…
(slideshare.net)
• "Analysis of Customer Satisfaction from E-Banking Services. A comparative study
of HDFC and ICICI bank. SUBMITTED IN THE PARTIAL FULFILMENT OF
COURSE FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS
AMINISTRATION Submitted By | Konda Venkatesh - Academia.edu
• (PDF) Comparative Finance Performance of ICICI and HDFC Bank
(researchgate.net)
• 5063-Article Text-9409-1-10-20210504.pdf
• “Satisfaction from E-Banking Services. A comparative study of HDFC and
ICICI bank (pdfslide.net)

85
 INDEX

SR.NO CONTENT PAGE

NO

Chapter - 1 INTRODUCTION
1 Meaning of E – Banking 01
1.1 Definition of E – Banking 09
1.2 History of E – Banking 16
1.3 Services Provided by Internet Banking 18
1.4 Products and Services of E – Banking 20
1.5 E – Banking Issues & Challenges 31
1.6 Advantages of E – Banking 35
1.7 Disadvantages of E – Banking 38

Chapter - 2 Literature and Review 42 - 54

Chapter - 3 Research and Methodology

3.1 Title 57
3.2 Objective of the study 57
3.3 Scope of the Study 57
3.4 Types of Research 57
3.5 Limitations of Study 58
3.6 Research Design 58
3.7 Research Method 58
3.8 Types of Data 59

Chapter - 4 Data Analysis and Interpretation 60 – 78

Chapter - 5 Conclusions & Suggestions

5.1 Conclusion 80

v
5.2 Findings 81
5.3 Suggestions & Recommendation 82

6 Bibliography 85

vi
 PROJECT REPORT
ON

A COMPARATIVE STUDY ON E – BANKING OF ICICI BANK

AND HDFC BANK

A Project Submitted to
University of Mumbai for partial completion of the degree of
Master of Management Studies
Under the Faculty of Commerce

SUBMITTED BY

MR. JAMEERULLAH AHESANULLAH

ROLL NO: A – 006

UNDER THE GUIDANCE OF

PROF. DR. NAVEEN SRIVASTAVA

STUDYING AT

H.K. INSTITUTE OF MANAGEMENT STUDIES & RESEACH

HK Campus, Relief Road,

Oshiwara, Jogeshwari West,
Mumbai, Maharashtra 400102

Academic Year 2021-2022

I
 DECLARATION

I the undersigned Mr. JAMEERULLAH AHESANULLAH here by, declare that the
work embodied in this project work titled “A COMPARATIVE STUDY ON

E – BANKING OF ICICI BANK AND HDFC BANK”

forms my own contribution to the research work carried out under the guidance of
PROF. Mr. Naveen Srivastava Is a result of my own research work and has not been
previously submitted to any University for any other Degree/ Diploma to this or any
other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

SIGNATURE OF STUDENT
(MR. JAMEERULLAH
AHESANULLAH)

CERTIFIED BY

II
 H. K. Institute of Management Studies & Research

CERTIFICATE OF COMPLETION

This is to certify that MR. JAMEERULLAH AHESANULLAH, of H. K. Institute

of Management Studies and Research CLASS Masters of Management Studies ROLL
NO: A-006 has completed A Project on A COMPARATIVE STUDY ON E –

BANKING OF ICICI BANK AND HDFC BANK, for the Fulfilment of

semester – II Masters of Management Studies, University of Mumbai

PROF. DR. NAVEEN SRIVASTAVA

(Project Guidance)

PROF. DR.NAVEEN SRIVASTAVA DR. YUSUF KHAN

(Course Co-Ordinator) (Director)

III
 ACKNOWLEDGEMENT

I take opportunity to express my gratitude to the people who have been Instrument in
the successful completion of this project.

I expressed special thanks.

I would like to show my greatest appreciation PROF. DR. NAVEEN

SRIVASTAVA I can’t say thanks you enough for this tremendous support and help.
Without her encouragement and guidance this project would have not materialized.

I am thankful to all my loving friends for their encouragement and support and help
for everything

I wish to avail myself of this to thanks my parents for their manual support and help
for everything

Last but not least: I am grateful to the University of Mumbai for including such Kind
of project work in the curriculum i.e. widen the horizon of the student and also act as
a source of learning for them.

All the above-mention people have left a mark on this project and gave me right path.
I will always be indebted to them.

IV